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Benefits of Cloud-Based Bookkeeping

Benefits of Cloud-Based Bookkeeping

So, what’s in it for you to move your business bookkeeping to a cloud-based bookkeeping solution? Actually, there’s probably more in it for you than you realize. There are a lot of great benefits of cloud bookkeeping and accounting. Here’s a few that I’ll go over with you right now:

  • Your work staff can turn into team players. Most cloud bookkeeping and accounting software allows for multiple users. This provides one central system where everyone involved in a particular project can access the same information and track the progress they need to be involved in. Everyone involved can work together to make sure all expenses are recorded and all clients are billed promptly and accurately.
  • Anytime and anywhere access. Since your bookkeeping and accounting software is “in the cloud”, this allows you and your staff the ability to login from any location where you have a connection to the Internet, and from almost any device. If you need to produce estimates, purchase orders and invoices on demand, it’s done!
  • Real-time business financial information at your fingertips. Everything you, your staff, your bookkeeper or your accountant do in the system is updated in real-time format. This gives you the most current financial position of your business that you could possibly have. At those times when you need to  make a quick decision, you have your information up-to-date and available.
  • Cost-effectiveness. When you use a cloud-based bookkeeping and accounting software, everything you need is hosted in the cloud. You don’t need to purchase a software to install on one or more computers. You don’t need a server to host your own software across multiple users. You don’t pay for license agreements. You don’t pay for updates. You don’t pay for backups. All of this is taken care of automatically with your subscription. Best of all, all of your business’s financial information is with you forever.
  • No fear of losing your information. When you use traditional bookkeeping and accounting software, the fear of losing all of your financial data is almost always in the back of your mind. What if your computer or server crashes? What if desktops or laptops are stolen? What if your system is hacked into, leaving all of your financial business information at risk? With cloud accounting, there is no trace of your business’s financial information on any of your company computers or servers.
  • Security of bank-level data encryption. Your financial data is safe and secure with 256-bit encryption, which is the same level of security measures taken in the banking industry. This is certainly much safer than storing your financial information on office computers or servers.

What is Cloud-Based Bookkeeping?

What is Cloud-Based Bookkeeping?

We’re all fairly familiar with ways in which we store different types of media online, and the idea is pretty much the same with cloud-based bookkeeping. When you upload a picture to your social media account, that image is stored on that particular company’s server. Those videos you watch on your favorite video site (think YouTube) are stored online on your video host’s server. Even music and movies that we download and listen to or watch are stored on the servers we download them from. Storing media on servers allows us access to it anytime from almost any device as long as we have a connection to the Internet. In recent years, the word “cloud” has become a more popular word alternative for “online”, hence all of this information is now stored “in the cloud”.

The terms “cloud bookkeeping” and “cloud accounting” may still be new to some. The general bookkeeping and accounting procedures are basically the same, with the major difference being that the bookkeeping and accounting software is hosted on remote servers (in the cloud) instead of on your own computers or servers. This allows the users of the software to access their applications remotely via the Internet. The business no longer has to purchase, install and maintain software on one or more desktop computers.

Using cloud-based bookkeeping and accounting software also results in having access to real-time, up-to-date financial information about your business. And since multiple users (employees, other office branches, etc.) can access the same information at the same time if allowed by the company, this provides better opportunities for collaboration within the business.

Cost-savings are also another reason many businesses are making the switch to cloud-based bookkeeping and accounting solutions. With desktop software, you initially have to purchase the software, a license agreement for however many users you need, and some type of support or maintenance program for when you run into problems you can’t fix on your own. And as your business grows, you will need to make additional purchases of licences and perhaps even a server to host your software to multiple users. When your purchased software becomes obsolete and unsupported, you again have to pay to upgrade the software to a more current version to continue use and support.

Cloud-based solutions are generally a subscription service. You don’t need to have expensive servers to host your software, and you don’t need to pay license fees to use the software. Your subscription service covers multiple users, maintenance, and backups. Another major advantage of cloud-based bookkeeping solutions is that you don’t have to pay for the software upgrades. The updates occur automatically, with nothing for you to download or install.